Casino president pretended to not notice man gambling with ‘illicit funds,’ feds say
The former president of the MGM Grand casino knew a patron was gambling with “illicit funds” from an illegal sports betting business — but pretended to not notice, federal officials said.
Scott Sibella, 61, of Las Vegas told authorities in 2022 that he was aware of the illegal sports bookmaking, but “didn’t want to know” because of his position as the casino’s president, according to court documents unsealed Jan. 25.
“If we know, we can’t allow them to gamble,” Sibella said, according to his plea agreement. “I didn’t ask, I didn’t want to know I guess because he wasn’t doing anything to cheat the casino.”
Instead of reporting the suspicious activity as he was required to under federal law, Sibella allowed Wayne Nix, the casino patron, to continue gambling in cash at the MGM Grand, prosecutors said.
Sibella is accused of letting Nix receive complimentary perks — including hotel stays, meals and golf trips with senior casino executives and high net-worth casino patrons — to encourage him to gamble at the MGM Grand, according to prosecutors.
The MGM Grand had accepted more than $4 million in cash, all illegal funds from Nix’s gambling business, by 2020, prosecutors said.
Now, Sibella has pleaded guilty to one count of failure to file reports of suspicious transactions required to be made by casinos, the U.S. Attorney’s Office for the Central District of California announced in a Jan. 25 news release.
In a statement provided to McClatchy News by John Spilotro, an attorney representing Sibella, Sibella said he’s pleased about the “investigation and its findings reaching a conclusion.”
“I take full responsibility for my actions and inactions, but I must make clear I took no action for my personal benefit or inurement,” Sibella said.
By not reporting his knowledge of Nix, Sibella violated the Bank Secrecy Act, according to the attorney’s office.
The law “mandates reporting of suspicious activities to protect financial institutions from becoming participants in money laundering activities often benefitting criminal or terrorist organizations,” Special Agent in Charge Tyler Hatcher, of the IRS Criminal Investigation’s Los Angeles field office, said in a statement.
“While president of MGM Grand, Mr. Sibella undermined the trust and confidence of his employees, customers and regulating agencies, and for that he will be held accountable,” Hatcher added.
The MGM Grand and The Cosmopolitan of Las Vegas have agreed to collectively pay $7.45 million to resolve accusations of violating federal laws, including the BSA, in connection with an investigation related to the case, prosecutors said.
As part of non-prosecution agreements, both casinos “accepted responsibility for laundering Nix’s illicit funds and failing to properly file suspicious activity reports (SARs) on Nix,” prosecutors said.
Nix, a former minor league baseball player, pleaded guilty in 2022 in connection to conspiracy to operate an illegal gambling business and filing a false tax return, court records show. His sentencing is scheduled for March 6.
Nix’s defense attorney, Steven G. Madison, declined to provide a comment to McClatchy News on Jan. 26, adding he will reserve comments for sentencing documents.
His sports betting operation involved professional athletes, according to the attorney’s office.
Meanwhile, Sibella indicated he will still be involved in the gaming industry, according to his statement.
“As this process comes to a conclusion, I look forward to continuing to provide my knowledge, skills and insights to support the continued growth, evolution and professionalism of the gaming industry,” Sibella said.
His sentencing is scheduled for May 8, according to prosecutors. He faces up to five years in prison and a $250,000 fine.
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